A Case Study On The Audit Failure Of Backdoor Listing Of Jiuhao Group By Lianda Accounting Firm

Compared with IPO listing,backdoor listing is more convenient and less time consuming.It is because of this characteristic that many companies want to use the backdoor to achieve listing purposes.At the fortieth anniversary of reform and opening up,our economic development is getting better and better.At the same time,the auditing business of the backdoor transactions undertaken by CPAs is also increasing.Many of them have obtained higher share considerations in order to meet the listing conditions.Financial fraud has finally led to the failure of CPA audits,which has dealt a heavy blow to CPAs and the reputation and trust of the industry.In-depth analysis of the reasons for the failure of the backdoor listing audit,and the identification of the accounting firm's countermeasures against the failure of the backdoor listing audit has become the focus of research in the CPA industry.This paper first summarizes the literature related to the failure of backdoor listing audit at home and abroad,and then makes an analysis and review,discusses how to define audit failure,understands the theoretical basis related to audit failure,and selects the CPA of Reanda Certified Public Accountants to audit the listing of Jiuhao Group.Failure cases are analyzed.Looking back at the whole process of Lianda's failure to audit the Jiuhao Group's backdoor listing,from the perspective of accounting firms and certified public accountants,the CPA has been rash in accepting the audit business and failed to maintain professional professional skepticism.Assessing its audit risk,the audit process is not properly implemented in the risk response stage,the CPA lacks the professional cautiousness,and there is no design and implementation of targeted audit procedures.From Reanda CPA,the firm's business quality control is implemented.Not strict,the evaluation mechanism is not perfect.Finally,the countermeasures and suggestions for preventing the auditing failure of the accounting firm's backdoor listing audit: CPA should be cautious in undertaking the backdoor listing audit business,fully understand the potential misstatement risk of the backdoor unit,design and implement the targeted auditing procedure,and always maintain professional skepticism.With prudence,accounting firms should strengthen the construction of a quality control system to improve the internal system and strengthen the training and reserve of auditors.